What Is Pasture Grass Worth?

[Running Arrow Bill]

Something to think about!

Given a 1,000 A.U. will normally eat 20 to 30 lbs of forage a day (hay or grass).
Given the cost of hay per pound is = to the cost of grass pasture per pound (nutrients being equal).

If the pasture is fertilized and/or irrigated, those costs cause grass (aka hay) to increase in price.

All this considered, anyone renting or leasing THEIR pasture to someone else should base their rental prices per animal unit of the cost value per pound of pasture (aka hay).

This gives new meaning to the $$ value of one's pasture grass, doesn't it!

Of course, the above is irrelevant if the pasture owner is an "absentee" owner (city day job type) who only wants someone to put animals on their pasture to maintain their Ag Exemption to keep their Taxes low...

:cowboy:

 

[dun]

Or you can base it on the going value for pasture in your area. Around here it's 6-8 bucks per head per month. Poor folks have poor ways.

 

[cross_7]

i've heard motorcyle and atv riders that have accidentally set grassland on fire were charged 25.00 per acre.

 

[Running Arrow Bill]

Guess it all has to do with having more grass than you know what to do with!

For us, however, we are not running a charity/welfare operation. It's not worth the hassle to mess with someone else's cattle unless you can break even and make a little profit based on your TRUE costs, not "going rate" that the naive charge.

Sorry if I offend anyone! However, I'm not going to subsidize another operator's operation at a loss to me...

 

[hayray]

I am working on some deals right now trying to figure out prices to offer land owners. But I am taking the approach of offering the cattle for vegetation control and land management. I am grazing land that is not too tillable and now with the housing slump and slow economy alot of absentee land owners and developers are considering leasing land to me wereas years ago that was hard to do. I am looking for an equal benefit for land owner and leasee but I have to compete were I have some type of advantage otherwise its just plain stupid.

 

[Jogeephus]

I am working on some deals right now trying to figure out prices to offer land owners. But I am taking the approach of offering the cattle for vegetation control and land management. I am grazing land that is not too tillable and now with the housing slump and slow economy alot of absentee land owners and developers are considering leasing land to me wereas years ago that was hard to do. I am looking for an equal benefit for land owner and leasee but I have to compete were I have some type of advantage otherwise its just plain stupid.

I'm doing some of the same. Picked up a nice hay field last year for nothing. Just gotta keep it mowed for the man during the summer so he doesn't have too. Its alicia. Have another prospect right up the road from my barn. Its costing the guy $200 to mow it. I told him if he would kill the bahia and sprig some bermuda I'd keep it mowed and fertilized for him but I'm not interested in baling bahia unless I have to.

 

[novatech]

Something to think about!

Given a 1,000 A.U. will normally eat 20 to 30 lbs of forage a day (hay or grass).
Given the cost of hay per pound is = to the cost of grass pasture per pound (nutrients being equal).

If the pasture is fertilized and/or irrigated, those costs cause grass (aka hay) to increase in price.

All this considered, anyone renting or leasing THEIR pasture to someone else should base their rental prices per animal unit of the cost value per pound of pasture (aka hay).

This gives new meaning to the $$ value of one's pasture grass, doesn't it!

Of course, the above is irrelevant if the pasture owner is an "absentee" owner (city day job type) who only wants someone to put animals on their pasture to maintain their Ag Exemption to keep their Taxes low...

:cowboy:

Irrigated pasture will flat out not pay out for a cow calf operation. It may work out for stockers if the price comes up.
The normal way people charge on stockers is on pound of gain. The estimated price of forage per ton per acre could be calculated I guess but I am certain that it could not be compared to hay prices as the cost are quite a bit different. A lot would also depend on the management skills of the guy leasing. With hay you have a lot of equipment, fuel, and labor involved. With grazing you need cross fencing for rotational grazing and facilities for working the cattle. I just don,t see how one could make an accurate comparison.

 

[Jogeephus]

I'm not going to subsidize another operator's operation at a loss to me...

Can't blame you there. I wouldn't do it either.

Or you can base it on the going value for pasture in your area. Around here it's 6-8 bucks per head per month. Poor folks have poor ways.

This is very true or you can price yourself out of the market. I guess everyone's situation is different. One of the owner's of a farm I manage decided we weren't getting enough rent for hunting after he listened to a DNR biologist talk about hunting leases. The biologist quoted that leases were going anywhere from $3 - $25/acre "depending on ....". I'm pretty sure the boss just heard $25 cause this was the mandate he set so we had to tell the clubs we were going from $10 to $25. Instead of pulling in the normal $80,000 we consistantly brought in, this year we only brought in around $30,000 cause no one seems to think it is worth it to them. While it looked good on paper it just goes to show you the old saying about pigs getting fat and hogs getting slaughtered is still true today.

 

[Alberta farmer]

Consider this: A yearling steer will put on about 2 lbs. gain a day on average decent pasture? Over 120 days he gains 240 lbs. If he went on grass at 700 lbs and cost $1/lb. he cost $700? He comes out at 940 lb. and sells for 90 cents or $846? So he made $146 or $36.50 month?
If the pasture produces 2 tons dry matter an acre and conversion rate for a steer is 9 to one, you are probably in the ballpark of one acre per steer. So you are getting paid(gross) $146/acre.
Now of course the guy who rents your pasture doesn't want to pay that much. He would rather pay you about 70 cents a day or $84 for the steer for the 120 days? And that is okay but he should be buying the salt/mineral and doing the checking!